Former Glo Worm canÂ?t sell its liquor license

Last yearÂ?s decision not to renew the liquor license of the former Glo Worm Lounge was upheld Tuesday by the Indiana Alcohol and Tobacco Commission.

That means the former owner will not be able to sell the license for the strip bar unless she takes the matter to court and wins.

The bar, which was in the 700 block of South Michigan Street, is now closed and was bought last year by the city of South Bend along with two other bars owned by Patricia Colley.

The state ATC voted at its meeting Tuesday in Indianapolis to approve the ruling of the hearing officer from the appeal of the license holder despite objections to the ruling filed by the barÂ?s lawyer.

The hearing officer denied the Glo WormÂ?s appeal based on the testimony and evidence presented at the July 10 appeals hearing.

That included material from the August 2005 state hearing at which the license was originally denied and from a July 2005 hearing of the county alcohol beverage board where the renewal was approved 2-1.

Â?WeÂ?re very happy about the latest decision,Â? said Patrick Mangan, executive director of Citizens for Community Values. Â?IÂ?m optimistic about the possibility of it having further impact.Â?

Citizens for Community Values, an anti-pornography group, has spent a great deal of time working against the renewal of the Glo WormÂ?s license and two others owned by Colley.

The group worked with the South Gateway Association, an organization of businesses in the vicinity of South Michigan Street, to point out the problems and crimes that could be connected to the bar.

Mangan believes the decision sends a message to adult businesses. Â?If you come here and have violations, youÂ?ll probably lose your license. WeÂ?ll stay after you until enforcement is accomplished.Â?

South Bend City Attorney Chuck Leone said the fact Colley no longer owns the license has no impact on the contract the city entered into last year to buy the Glo Worm, the Quarterback Lounge and Teasers Show Bar.

The city paid the Colleys about $400,000 for the businesses, land and buildings, which Leone said will be torn down.

The contract allowed the owners to keep the liquor licenses to sell but also said they could not open an adult business within 100 miles for five years.

Â?I think we accomplished what we set out to accomplish,Â? Leone said. Â?We wanted to close the businesses and get control of the property. That was very important.Â?

Previously, the city had bought the Kitty Kat Lounge property after its owner went to prison.

Mangan said his group disagreed with the buyout. Â?We thought it was unnecessary,Â? he said, in light of the cityÂ?s tight economic situation. Â?We wanted the city to spend a little money on enforcement.Â?

Mangan maintains the city could have gotten the businesses for much less if they had waited for all the licensees not to be renewed.

Waiting, Leone said, would have been riskier and would have taken longer, plus the businesses could have remained open all through any appeals process.

Â?Citizens for Community Values deserve credit for putting pressure on the bars,Â? Leone said. Â?That helped the city in the negotiating process.Â?

Leone said he was ready to put the issue to rest and move on to other things.

Citizens for Community Values and South Gateway intend to do whatever they can to keep Colley from being able to sell the other liquor permits, according to Mangan.

Colley still holds the licenses for Teasers and the Quarterback Lounge.

ColleyÂ?s attorney, Mitchell Heppenheimer, has 30 days to file a lawsuit in court appealing the Glo Worm license.